Global mattress manufacturer Tempur Sealy International, Inc. has reported a decline in third quarter sales.
According to its latest trading update for the third quarter ended 30 September 2023, total sales fell 0.5% to $1,277.1 million as compared to $1,283.3 million in 2022.
North America net sales decreased 3.2% to $1,023.7 million as compared to $1,057.7 million. International net sales increased 12.3% to $253.4 million as compared to $225.6 million in 2022.
Gross margin was 44.9% as compared to 42.2% in the third quarter of 2022. Net income decreased 14.6% to $113.3 million as compared to $132.7 million.
Company Chairman and CEO Scott Thompson commented: “We realised robust third quarter operating cash flows and expanding gross margins while our sales and earnings were solid against a challenged operating environment. We believe the Company outperformed the broader bedding market. This outperformance and double-digit growth in international sales partially mitigated a challenged U.S. bedding market, which was softer than anticipated in the quarter.
“Similar to the second quarter, we demonstrated the strength of our business model and its ability to produce reasonable returns, even in a less robust market. Improvements in operations and supply contracts, combined with the impact of consumer-specific strategies drove significant gross margin expansion, positioning the Company well for the future.
“Regarding the pending Mattress Firm transaction, we continue to expect to formally respond to the Federal Trade Commission’s second request in the fourth quarter and to close the transaction in mid to late 2024. I am pleased to share that Tempur Sealy and Mattress Firm continue to make joint progress in synergies planning.
“In addition, Tempur Sealy has signed post-closing supply agreements with numerous companies providing Mattress Firm with access to certain consumer-desired products, solidifying important supplier relationships ahead of the expected close. Additional discussions regarding supplier relationships are ongoing.”
